Now the squareroot is supposed to cover the entire right side of the equation. Wa and Wb are unknowns.

October 21st 2008, 01:36 AM

U-God

Are you looking to solve for them numerically or in terms of each other? As far as I know if you only have one equation and yet two unkowns you cannot solve for them numerically. Someone could correct me though.

October 21st 2008, 01:41 AM

cupcake

Thank you for answering!
Anyway, numerically.. Sorry, I forgot to replace Wb with 1-Wa.. What I'm trying to do here is find unknown weights in a portfolio of two assets. Since Wa + Wb = 1, Wb = 1-Wa.
For simplicity, I replaced Wa with X.

Oh ok, I'd square both sides, expand all of your brackets, collect like terms. Bring all terms to one side, so the other side is zero and then apply the quadratic formula.

October 23rd 2008, 11:26 PM

CaptainBlack

Quote:

Originally Posted by cupcake

Thank you for answering!
Anyway, numerically.. Sorry, I forgot to replace Wb with 1-Wa.. What I'm trying to do here is find unknown weights in a portfolio of two assets. Since Wa + Wb = 1, Wb = 1-Wa.
For simplicity, I replaced Wa with X.